RR Donnelley to separate into three publicly traded companies in 2016

By Lisa Kerner

Charlotte, N.C., Aug. 4 – RR Donnelley & Sons Co. announced plans to create three independent, publicly traded companies by the end of 2016.

The financial communications services company, FinancialCo, serves both the investment and capital markets worldwide. It had trailing 12-month net sales for the period ended June 30 of about $1 billion as a standalone company, according to a news release.

PRSCo, the publishing and retail-centric print services company, prepares, produces and distributes periodicals, catalogs and directories for publishers, merchandisers and retailers worldwide. It had sales of about $3.5 billion through June 30.

The customized multi-channel communications management company, or CMCo, offers customized digital and printed communications services, including direct mail and short-run commercial printing, among other services. CMCo had net sales of about $7 billion for the trailing 12 months ended June 30.

The transaction is expected to take the form of a tax-free distribution to RR Donnelley shareholders of FinancialCo and PRSCo in two new, independent, publicly traded stocks. Once the spinoffs are completed, existing RR Donnelley shareholders will own shares in all three companies.

“We see a significant opportunity to unlock value by allowing these three businesses to pursue their own strategies and invest according to the unique dynamics of their respective industries,” said president and chief executive officer Thomas J. Quinlan III.

“Creating three independent companies will allow each to more quickly capitalize on opportunities created by continued technological innovation and globalization within the markets they serve.”

At June 30, RR Donnelley had long-term debt of $3.43 billion, cash and cash equivalents of $295.4 million and net available liquidity of $1.28 billion.

RR Donnelley is a Chicago-based provider of integrated communication services.

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